The Financial Accounting Standards Board (FASB) plans to evaluate in 2026 whether certain cryptocurrency assets, including some stablecoins, qualify as cash equivalents, reported The Wall Street Journal (WSJ).

The US accounting standard maker will also consider how companies should recognise and report transfers of crypto assets.

Both projects were added to the FASB’s agenda in recent months following public feedback and form part of more than 70 potential topics identified through its latest agenda consultation.

The consultation sought input from companies, investors and other stakeholders, with decisions on all proposed agenda items expected by the end of the summer.

In October, the FASB agreed to examine cash-equivalent classification, focusing on stablecoins that are typically pegged to a fiat currency.

This followed legislation signed into law three months earlier, in July, by Donald Trump, which introduced regulatory oversight for stablecoins.

The legislation, known as the Genius Act, did not specify what should qualify as a cash equivalent for accounting purposes.

“It is just as important to tell people what does not qualify as a cash equivalent as what does,” said Richard Jones, chair of the FASB.

A month later, the board voted to explore the accounting treatment of crypto asset transfers, including so-called wrapped tokens that enable assets to move between blockchains.

This work would build on a 2023 FASB standard that requires companies to measure bitcoin and other crypto assets at fair value.

That standard addressed a gap in US generally accepted accounting principles but excluded non-fungible tokens and certain stablecoins.

Jones said the two initiatives reflected recommendations from a crypto industry working group established by President Trump, alongside public consultation responses, though he added that he had not been pressured to follow the group’s proposals.

The Securities and Exchange Commission, which enforces FASB standards for listed companies, is expected to closely follow any changes that result.

The FASB has recently been under political scrutiny, including proposals from House Republicans to freeze its funding unless it dropped planned tax disclosure rules.

Public companies are currently preparing to introduce expanded income tax disclosures in their 2025 annual reports.

Some market participants have questioned whether cryptocurrency use is widespread enough to justify prioritisation, noting that only a limited number of companies, such as Tesla, Block and Strategy, hold bitcoin on their balance sheets.

However, interest in stablecoins is expected to grow once the Genius Act takes effect in 2027, although investors may remain cautious about treating them as cash equivalents without stronger risk disclosures.

Jones, whose seven-year term as FASB chair concludes in June 2027, said he also intends to complete a separate standard on distinguishing liabilities from equity before his tenure ends.